Millennials remain the largest single home-buying population in the country, and rising home prices are not removing their determination to live – be it by purchase or rent – in urban areas. According to information from the U.S. Census Bureau as analyzed by RentCafé, “millennials are still showing a strong preference for big, city, urban ZIP codes in walkable, vibrant parts of town.”

RentCafé analysts ranked ZIP codes in the 30 largest U.S. cities by the highest increases in millennial population over a five-year period. Increases were measured both by cities posting the largest millennial populations and by cities with the biggest changes in volume of millennials living in the area. Overall, downtown areas and areas near downtown areas were clear favorites.

The 5 Hottest ZIP Codes for Millennial Living Were:

  1. 90014
    Downtown Los Angeles, California
  2. 90013
    Downtown Skid Row area in Los Angeles, California
  3. 10282
    Downtown/Battery Park City in Manhattan, New York
  4. 97232
    Near downtown/Kerns and Laurelhurst neighborhoods in Portland, Oregon
  5. 10069
    Neighborhood of Lincoln Square in Manhattan, New York

The only neighborhood in the top five was Lincoln Square, a neighborhood in Manhattan, New York. In the top two ZIP codes, millennial population rose by 91% and 60%, respectively in the last five years, according to Housing Newswire. Battery City’s millennial population rose by 54.5% during the same period of time.

Common Factors Unite Millennial Markets

Millennial hotspots are likely to continue expanding as the population continues to form new households. Areas that tend to attract millennials are not, as some economists predicted five years ago, changing to accommodate the population’s needs as it ages into parenthood and marriage. Instead, these three things continue to attract millennial residents:

  • Entertainment
  • Job opportunities
  • Strong neighborhood identity

Notice that affordability does not necessarily play a significant role in millennial residence trends, but that this generation is willing to rent longer or make other sacrifices in order to live in attractive locations.

Categories | Article | Market & Trends
  • Carole VanSickle Ellis

    Carole VanSickle Ellis serves as the news editor and COO of Self-Directed Investor (SDI) Society, a membership organization dedicated to the needs of self-directed investors interested in alternative investment vehicles, including real estate. Learn more at SelfDirected.org or reach Carole directly by emailing Carole@selfdirected.org.

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